EUR/USD Price Forecast – Euro continues to drift lower

The Euro initially tried to rally a bit during the trading session on Thursday before turning around and falling again. At this point, it’s likely that the market will continue to go lower, but it is going to be a very slow move.
Christopher Lewis
EUR/USD daily chart, August 30, 2019

The Euro initially tried to rally during the session on Thursday, but then found enough resistance to turn things around and show signs of weakness again. With that, it’s likely that we will see more grinding lower, and that makes quite a bit of sense considering that the European Central Bank continues to see a lot of economic headwinds that they will have to battle. As central banks go, this means loosening the monetary policy, and that of course should drive the Euro lower.

EURUSD analysis Video 30.08.19

At this point, we also are going to have to deal with the Germans going into recession, which is all but guaranteed at this point. With Germany struggling, so goes Europe. Beyond all of that, even though the Federal Reserve is cutting interest rates, there is a positive return with US Treasuries, something you cannot get in Europe. With that, it makes sense that this pair continues to go lower. Having said that, we are essentially in a 100 PIP range of massive support, so looking at this situation it’s very likely that it will be sloppy and difficult to break down. In other words, it’s probably going to be a scenario that we simply fade short-term rallies.

Just above, we have the 50 day EMA painted in red on the chart. It has acted as a bit of a ceiling for the market, so any rally at this point will probably run into a buzz saw of resistance in that region. Ultimately, I would be a seller at the first signs of exhaustion in that area as well.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.